March 13 (Bloomberg) -- Craig Donohue, the chief executive
officer of CME Group Inc. for the past eight years, plans to
retire in December when his contract expires at the world’s
largest futures exchange.

President Phupinder Gill will replace Donohue, 50, as CEO,
the Chicago-based company said yesterday in a statement.
Executive Chairman Terrence Duffy will become president and the
contracts of both have been extended. Donohue said his decision
was unrelated to the failure of one of the company’s customers,
MF Global Holdings Ltd.

The decision “is one I’ve been working to for quite some
time,” Donohue said on a conference call. The need for the firm
and industry to deal with the fallout from MF Global’s failure
“does not factor in at all in my thinking,” he said.

CME Group, which controls about 98 percent of U.S. futures
trading, is the product of some of the largest exchange
consolidations. The Chicago Mercantile Exchange’s $9.6 billion
purchase of the Chicago Board of Trade in 2007 created CME
Group, which then acquired the New York Mercantile Exchange for
$7.6 billion in 2008.

“Under Craig’s guidance, CME Group has grown into the
preeminent global derivatives exchange company,” Duffy said in
the statement. “His many contributions have helped CME
transition from a membership-owned organization into a for-profit, public company that has expanded into every major asset
class.”

Donohue, who became CEO in 2004, joined the company 23
years ago.

‘Bittersweet Decision’

“This is a bittersweet decision for me but I am ready to
explore new challenges,” he said in the statement. “I have
loved every minute of my time here,” he added later on a
conference call with analysts.

CME Group shares fell 2.3 percent to $270.20 as of 4 p.m.
in New York, before the announcement which followed the end of
regular trading. The stock has fallen 5.3 percent over the past
year, assuming reinvested dividends.

MF Global, one of the largest clearing brokers at the
company, used about $700 million of customer funds to “meet
liquidity issues” at its broker-dealer in the days prior to its
October bankruptcy, according to a timeline of events released
by CME Group.

Subpoenas

CME Group said it received subpoenas in November from the
Chicago federal grand jury investigating MF Global’s failure, as
well as the Commodities Futures Trading Commission, according to
a Feb. 28 regulatory filing.

The CFTC is reviewing CME Group’s audit of MF Global
before the broker’s bankruptcy.

“We believe that we carried out our duties and
responsibilities in accordance with these standards and
procedures,” CME Group said in the filing.

Gill said on the call that he plans “to continue to drive
the company in the same direction,” including opportunities to
expand internationally, in over-the-counter instruments and in
index services.

The announcement came on the eve of the Futures Industry
Association’s annual conference in Boca Raton, Florida.

“Craig is the epitome of the new generation of exchange
leaders,” said John Damgard, the former president of the trade
group. “Under his leadership, the CME transformed itself into a
professionally managed, shareholder-responsive organization that
set the standard for the industry.”